letsrecycle.com looks at developments in the paper market during August.
OCC prices have risen by another couple of pounds this month, supported by strong demand from Southeast Asia and India – alongside a boost from the PERN.
Mixed paper has increased by £3 at the top end of the export range, while Multigrade is up £5 at both ends of its export range. Best White 2 has seen a more significant rise, reaching a midpoint of £310 per tonne.
Sorted Office Waste is up £5 both ends on the domestic side only.
August is traditionally a quieter month for the paper sector, with European demand typically softer during the summer holiday period.
However, continued domestic and Asian demand has provided price support, helping to keep most other paper grades relatively stable.
The market has also benefited from increases in the PRN and PERN values, while favourable exchange-rate movements have provided additional support.
India, in particular, continues to seek supply from the UK as the US market becomes increasingly focused on domestic consumption.
Elsewhere, Indonesia has conducted a series of container checks on mixed paper shipments, with some found to contain material below the required quality standards. As a result, the country is not currently importing this grade.
Shipping delays and congestion continue to affect deep-sea exports, with some companies reporting delays. The impact has not been seen consistently across the market, however, and appears to vary depending on individual shipping routes.
Predictions for September
The full impact of current shipping disruption may not yet have been felt, with containers still reported to be held up at points in India and elsewhere along key transit routes.
Meanwhile, the sector is beginning to anticipate and prepare for increased material generation as the year draws to a close. This is a familiar seasonal trend, with volumes typically building towards the final months of the year and the Christmas period.
Overall, market sentiment remains relatively steady, and the consensus is that broadly flat prices are likely to continue into October.
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